Large investors on Wall Street have historically diversified their portfolios to include single-family residential (SFR) real estate, providing validation that SFR rental portfolios are a viable asset class. Often yielding returns exceeding those found in the stock market, small investors are taking note, grasping the opportunities available to them through real estate investments. There is potential for major gains in the $29 trillion* residential investment real estate industry. In 2016, investors purchased 37% of all real estate sold in the U.S.*
According to a recent study conducted by crowdfunding firm, RealtyShares, real estate is gaining popularity from everyday investors. 50% of those interested fall into the millennial demographic. Age 18-24, millennials are the next wave of investors and they are demonstrating a preference to real estate over the stock market and other investment options. Since 2000, nationally, real estate has generally outperformed the stock market at a 2-to-1 return ratio. But while the population is beginning to recognize real estate as a strong investment, 83% of millennials think it’s too complicated to make a reality.
Luckily, as the space continues to institutionalize, more and more investors are unlocking access to sophisticated data and analytics to help inform their investment decisions. In leveraging the same tools used by the largest national investors, more small investors are entering the space, treating investment properties as a sustainable business and moving outside of their own backyards into more profitable rental markets across the county.
Whether investing to buy-and-hold, flip properties, house hack, or some other investment strategy, data is the core element to making sound decisions. The Census Bureau, Bureau of Labor Statistics, and even industry specific sources like RentRange®, Redfin and Realtor.com® offer investors key metrics to guide where they should invest, how to price a property and vital data points to understand a market. Markets on our investment radar, showing a growing educated population and affordable housing stock include Cleveland, Detroit, Buffalo and Pittsburgh. For more data products serving single-family residential investors and service providers like lenders and property managers, visit www.rentrange.com or www.investabilitysolutions.com to see our full product suite.
*Sources: RealtyShares, Seeking Alpha
Brittany Nelson | Associate Product Marketing Manager
Investability® Solutions offers an extensive set of services to the professional investment community in a single seamless platform. As a vertically integrated solutions provider to the single-family residential investment sector, Investability Solutions is able to assist investors throughout the investment lifecycle. Part of the Altisource Portfolio Solutions S.A. family of businesses, we bring the financial strength and national platform of a publicly traded company to a fragmented service market. RentRange, the data arm of Investability Solutions, offers investors rental and housing market analytics and leverages a proprietary rental algorithm to provide property-level rent rate estimates.
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